The September Brent futures contract has experienced a downturn this afternoon following an initial period of sideways price action and a brief rally. The contract traded between $85.10/bbl and $85.55/bbl from 12:00 BST to 15:30 BST but then rose to $85.80/bbl at 16:10, however subsequently fell below $84.75/bbl, where it sits as of 17:15 BST (time of writing). The EIA has estimated global oil demand at 103.80mb/d, with global oil supply at 101.98mb/d in June. In doing so, they raised their 2024 demand estimate to 1.11mb/d from 1.08mb/d and raised their 2025 estimate to 1.77mb/d from 1.53mb/d. Russian oil major Rosneft’s flagship Vostok Oil project has been granted a tax break by Moscow as lawmakers moved to approve a new progressive income tax, higher corporate tax, increased taxation of small businesses, and other initiatives on Tuesday that should raise the state budget by as much as $30 billion in 2025. Nigeria’s NNPC seeks a new oil-backed loan to boost its finances as the country faces a foreign exchange crunch and a growing gasoline debt of $6 billion. At the time of writing, the front and 6-month spreads are $0.74/bbl and $3.42/bbl, respectively.
